(December 20 – 11:35 ET) – The Department of Finance has released revised proposals to amend the income tax rules dealing with taxpayer migration and trusts.
Finance says that main purpose of these proposals is to enhance Canada’s ability to tax the gains emigrants accrue while they are resident in Canada. These proposals will be merged with the draft technical amendments released on November 30, 1999, in a single bill to be tabled in the House of Commons in the new year. The revised proposals are out for comment once again.
In addition to addressing the tax treatment of property distributed from a Canadian trust to a non-resident beneficiary, the detailed proposals also revise the rules governing distributions to trust beneficiaries and introduce new measures dealing with the tax treatment of bare, protective and similar trusts.
Also on the topic of tax, the Finance Minister has announced that the existing limitations on the deductibility of increased provincial payroll and capital taxes will continue to apply in the year 2000. Existing provincial payroll and capital taxes will remain deductible for federal income tax purposes, but any increases in these taxes by the provinces would not be deductible.